1. The business cycle

2. Read p. 114-5 and answer the questions 1. What fluctuates during a business cycle? 2. What tends to rise during an upturn? 3. What happens during a downturn? 4. What causes of business cycles are mentioned in the text? (2) 5. What do people do when economic times are good? 6. When does an upturn end? 7. What do people tend to do then? 8. What is investment linked to? 9. When do people invest? 10. How does a downturn end?

3. Define... 1. An upturn 2. A boom 3. A recession 4. a depression or slump. 5. a peak. 6. a trough. What is... 1. a negative growth?

5. Theories for the business cycle A) INTERNAL OR _________ THEORIES 1. These theories hold that business cycles are caused by... 2. A downturn begins when.... 3. People spend, and borrow money when… 4. People tend to spend less when… 5. When interest rates rise... 6. Companies only invest while... B) EXTERNAL OR _________ THEORIES 1. These theories hold that business cycles are caused by... 2. Schumpeter believes that… 3. Creative destruction means that...

6. MK, p. 116, Vocab. 2/2: synonyms Boost Depression Expand Output Decrease Excess Expenditure Recovery Stimulate Slump Grow Production Reduce Surplus Spending Upturn

7. MK, p. 116, Vocab. 2/3: opposites Boom Demand Exogenous Contract Peak Save Depression Supply Endogenous Expand Trough Spend

8. Describing graphs

9. Diagram, line chart, flow chart, pie chart, bar chart

10. Name the following shapes: 1. 2. 3. ______________ 4. ------------------------ 5. ………….............. 1. Vertical axis (pl. axes) 2. Horizontal axis 3. Solid line 4. Broken line 5. Dotted line

11. Writing tips for describing graphs 1. Look at the graph and decide what is the topic and the time frame of the graph. 2. What do the labels and the numbers represent? (a percentage? A price?) 3. Describe the overall situation, find the most important trends. 4. Do not describe every detail. 5. Try not to repeat the same language and sentence structures. 6. Stick to the facts, do not give opinions. 7. Conclude by summarising what we learn from the chart.

12. Write an intro to this graph: 1. topic, 2. time frame, 3. overall situation

13. Language: Verbs Decide if the following verbs are transative (followed by an object) or intransative (no object necessary). Put the following objects after the verb if you think it is necessary: prices, sales, spending, taxes. The verbs: Rise, boost, plunge, fall, decline, grow, spur, plummet, slash, jump, slump, rally, soar, raise, bring down

14. INTRANSITIVE TRANSITIVE VERBS (no object) VERBS + a direct object RISE GROW JUMP RALLY SOAR FALL DECLINE PLUMMET SLUMP PLUNGE TO RAISE PRICES TO BOOST SALES TO SPUR SPENDING TO SLASH TAXES TO BRING DOWN PRICES INCREASE DECREASE

15. Rise, fall, raise, arise Give the past forms of these verbs and of the verb feel. Which verb means to happen, to occur or to come into existence? 1. A cash-flow crisis has _________. 2. Last year we ____ $2 m in capital. 3. Retail prices ______ by 7% last year. 4. The Prime Minister ______ sure that unemployment will decline in the next two years. 5. The Fed will probably ____ interest rates by 0.5%. 6. The problem ____ from the lack of quality control.

16. Rise, fall, raise, arise Give the past forms of these verbs and of the verb feel. Which verb means to happen, to occur or to come into existence? 1. A cash-flow crisis has arisen. 2. Last year we raised $2 m in capital. 3. Retail prices rose / fell by 7% last year. 4. The Prime Minister felt sure that unemployment will decline in the next two years. 5. The Fed will probably raise interest rates by 0.5%. 6. The problem arose from the lack of quality control.

17. Nouns can also be used to describe trends. What is the noun version of the verb? Verbs To increase To decrease To decline To fall To rise To drop To surge To plunge To slump To improve To jump Nouns An increase A decrease A decline A fall A rise A drop A surge, an upsurge A plunge A slump An improvement A jump

18. Adjectives and adverbs help in describing the speed or the degree of change A D + V E R B S DEGREE OF CHANGE The oil prices rose sharply. SPEED OF CHANGE In November the oil prices started falling abruptly. A D J E C T I V ES+ NOUNS DEGREE OF CHANGE There was a sharp increase in the price of gold. SPEED OF CHANGE The stock markets saw an abrupt decrease in the ratings.

19. Adjectives Degree or speed? Make two groups. Gradual, dramatic, abrupt, considerable, quick, significant, sharp, rapid, substantial, sudden, steady, slow, moderate, slight

20. Adjectives Degree dramatic considerable significant sharp substantial moderate slight Speed abrupt sudden rapid quick steady slow gradual

21. Make adverbs from adjectives Adjectives significant sharp substantial moderate gradual dramatic considerable steady Adverbs significantly sharply substantially moderately gradually dramatically considerably steadily

22. ADJECTIVE OR ADVERB? There was a CONSIDERABLY / CONSIDERABLE fall. It fell SLIGHT / SLIGHTLY. There was a SLIGHT / SLIGHTLY upturn. The government decreased taxes MODERATE/ MODERATELY. They reported a DRAMATICALLY / DRAMATIC downturn.

23. Fill in the prepositions to rise _____ $60956 _____ $120956 to fall _____ £22004 _____ £11002 to increase __ 77% to decrease __ 43% sales stood __ $1m an increase ___ $60000 the price rose __ $60000 to fall ____ 50% an increase ___ 77% a decline ___ 43% Prices peaked __ $78 ___ 2011.

24. FILL IN THE PREPOSITIONS to rise from $60956 to $120956 to fall from £22004 to £11002 to increase by 77% to decrease by 43% sales stood at $1m an increase of $60000 the price rose by $60000 to fall by 50% an increase of 77% a decline of 43% Prices peaked at $78 in 2011.

25. PREPOSITIONS: explain the difference Draw a chart to represent both. Sales grew by $5 m. Sales grew to $5 m. Sales grew from 10m to 15 m. Sales are now at 5 m.

26. Prepositions N + of + #(change)  A growth of 78% V + by + #(change)  Sales grew by 78% V + to + #(destination)  Sales grew to $15m Current position on a graph/standing: at  Sales are currently standing at 15m.  Sales peaked at 25m.  Sales bottomed out at 4m.

27. HW: Describe this graph in writing